Eldridge has launched an active fixed income ETF available to European investors that focuses on structured credit.
The ETF, named the Eldridge AAA CLO UCITS ETF, will allow access for non-US based investors to AAA-rated CLO liabilities without the US withholding taxes.
The bonds targeted by this fund will have the lowest level of expectation for defaults and Eldridge said CLOs are typically less correlated with other stocks and bonds than other credit investments.
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Tarek Barbar, co-portfolio manager of TAAA, said: “Building on Eldridge’s heritage as investment specialists in the CLO space, we are excited to introduce this new solution to investors globally,”
“The Eldridge AAA CLO UCITS ETF has potential to enhance clients’ portfolios by offering consistent stable levels of floating rate income.”
The ETF listed on Deutsche Borse Xetra on 5 March and has an expense ratio of 0.35%.
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“We are committed to delivering competitive risk-adjusted returns through our rigorous due diligence and portfolio construction process,” said Andrew Ward, co-portfolio manager of TAAA.
“The Eldridge AAA CLO UCITS ETF reflects that very commitment and will seek to provide global investors access to the highest quality AAA-rated CLO bonds.”